Legislation
The foremost duty of Parliament is participation in the legislative process. Without Parliament, no law can be adopted or amended. Parliament has the right of constitutional and legislative initiative (along with the Reigning Prince and the people); in practice, most legislative proposals are drafted by the Government or its experts. Parliament can send legislative proposals back to the Government or form its own committees to revise them.

Each legislative proposal is first subject to an initial debate; as a rule, the initial debate is followed by two readings and a final vote. During the initial debate, Parliament decides whether to even consider the proposal. In the first reading, suggestions can be made that will be evaluated by the Government for the second reading. In the second reading, each individual article is voted on.

In order for a law to become valid, the sanction of the Reigning Prince, the countersignature of the Prime Minister, and publication in the Liechtenstein Legal Gazette are necessary in addition to assent by Parliament.

Every law adopted by Parliament that it has not declared to be urgent and every international treaty approved by Parliament is subject to an optional referendum.

International Treaties
International treaties affecting State sovereignty, imposing a new burden on the State, or affecting the rights of Liechtenstein citizens must be presented to Parliament. Parliament may not amend a treaty signed by the Government, but may only adopt or reject it in its entirety.

Fiscal Authority
The State budget is prepared by the Government and adopted by Parliament. Parliament has the right to amend individual budget items. If the Government requires additional appropriations over the course of the year for new mandates or if individual budget appropriations are exceeded, the Government must obtain a supplementary credit from Parliament. In cases of projects requiring financial commitments over multiple years, the Government must request a commitment credit from Parliament.

Formation of the Government
A very central duty of Parliament is the formation of a functioning Government. Parliament elects the Government Ministers at the beginning of its four-year term of office; formally, this election is only a recommendation for appointment by the Reigning Prince. The Reigning Prince does not have the right to freely appoint the Government, but is rather bound by the recommendation of Parliament. Conversely, Parliament may recommend that the Reigning Prince dismiss Ministers if they lose the confidence of Parliament. The Government requires the confidence of Parliament throughout its term of office.

Elections
Parliament is responsible for various elections: In addition to electing the Government, Parliament elects the governing and supervisory boards of the State institutes, the members of individual commissions, and the board of the foundation of the State Art Collection.

Judges of the civil and criminal courts are elected pursuant to the recommendations of a body jointly appointed by Parliament and the Reigning Prince. The Reigning Prince chairs this body and casts the deciding vote. Parliament and the Reigning Prince may appoint the same number of members to this body. Parliament delegates one Member of Parliament from each of the electoral groups represented in Parliament. The Government delegates the Justice Minister. The deliberations of the body are confidential. The body can only recommend candidates to Parliament with the consent of the Reigning Prince. If Parliament elects the recommended candidate, the Reigning Prince appoints the candidate as judge. If Parliament rejects the candidate recommended by the body and no agreement can be reached within four weeks on a new candidate, Parliament recommends an opposing candidate and orders a popular vote. If there is a popular vote, eligible voters have the right to nominate candidates under the same conditions as an initiative.

Supervisory Function
Parliament has the right and duty to supervise the entire State administration including the administration of justice. Parliament mandates the Administration and Management Committee for this purpose, but also exercises this task directly when considering the annual accountability reports of various authorities and the national accounting report. Moreover, Members of Parliament may direct written and oral questions to the Government on any area of the National Administration. Investigation committees are a strong supervisory tool, appointed for specific occasions.